Hungary targets 2.5% GDP growth through structural reforms

Hungarian Finance Minister András Kármán has outlined the government's economic growth targets, projecting a GDP increase of 1.7–2% this year and approximately 2.5% next year. This growth is expected to be driven by stable consumption and a recovery in investments following a long period of decline.

To ensure sustainable growth, Kármán emphasized the need for a structural shift focused on increasing productivity, noting that Hungary has lagged behind regional competitors in this area. The government plans to reform the tax system, public procurement, and subsidy models to direct capital toward high-value-added sectors. This strategy includes dismantling market-distorting structures, reviewing overpriced state contracts, and renegotiating certain concessions.

While these reforms may cause short-term economic friction or temporary capacity underutilization, Kármán stated they are essential for building a competitive market economy. Key challenges to this transition include a labor shortage caused by an annual surplus of 50,000 retirees, though low interest rates and EU funds are expected to support the process.